Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian stock markets hovered near four-year highs on Tuesday, supported by Wall Street’s record close, as investors awaited major corporate earnings and developments in U.S. tariff negotiations with key trade partners.
Japan’s markets reopened after a holiday, reacting modestly to weekend election results. Prime Minister Shigeru Ishiba’s ruling coalition lost ground in upper house elections, but Ishiba pledged to stay in office. The yen held steady at 147.46 per dollar after rallying 1% on Monday. Japanese equities opened higher but pared gains, while bond markets remained calm, with most of the political outcome priced in.
Commonwealth Bank economist Kristina Clifton noted that Ishiba’s weakened leadership could lead to more fiscal stimulus, potentially pressuring the yen and Japanese government bonds.
MSCI’s Asia-Pacific index excluding Japan briefly touched its highest since October 2021 and remains up 16% year-to-date. Meanwhile, the S&P 500 and Nasdaq hit new highs on Monday, driven by Alphabet and other tech giants ahead of a wave of earnings.
Investor attention remains fixed on the August 1 deadline for U.S. trade deals. Tensions with the EU are mounting, with Brussels considering retaliation. Clifton emphasized that trade agreements with Japan and the EU are pivotal, adding that the dollar could weaken further against the euro and pound depending on the deal outcomes.
The euro held firm at $1.1689, while the dollar index stood at 97.905. Concerns over the Federal Reserve’s independence persist, fueled by President Trump’s criticism and comments from Treasury Secretary Scott Bessent.
The Fed is expected to keep rates unchanged in July, but markets anticipate potential rate cuts starting in September. In commodities, oil prices slipped as fears of a U.S.-EU trade war raised demand concerns. Brent crude fell to $68.97, while WTI eased to $66.99.
